Below is an excellent video (RSS and e-mail Readers may need to click through to view it) outlining how the global economic downturn got started with the credit crisis in the U.S. If you’ve heard the term sub-prime and aren’t exactly sure what that’s all about, this video does a great job explaining it.
Bear in mind that this is U.S. focused, but it’s a very informative look at how this mess all started. It will also help you understand why Canada’s banks are in good shape: they avoided much of the financial instruments mentioned in the video, and our conservative banking practices and tighter regulations prevented them from getting over-leveraged, and from giving money to people who shouldn’t have qualified.
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